April 15, 2014, Vancouver, British Columbia: Rio Grande Mining Corp. (RGV—TSXV) (the “Company”) is pleased to announce that it has entered into an agreement with Unity Energy Corp. (UTY—TSXV) whereby the Company can earn a 50% interest in the Mitchell Lake Uranium Project, which covers an area of 2354ha in the south eastern Athabasca Basin, Saskatchewan. The project lays on the eastern edge of the Athabasca Basin, some 400m north of Cameco’s Mitchell Lake Zone and 2.2km to the north of UEX’s West Bear Deposit. Other, advanced exploration projects in the immediate area include UEX’s Hidden Bay Project, Denison’s Minor Bay Project and Pitchstone’s Martin. Unity examined Mitchell Lake in 2011 with a VTEM survey, which confirmed the two conductive zones of interest: the Mitchell Lake Zone.
The Company can earn a 50% interest in Unity’s option to acquire a 100% interest in the property by paying $100,000 to Unity within 12 months of TSX Venture Exchange approval and by completing $3,000,000 in exploration expenditures on the property over the next 4 years. In conjunction with this filing, Rio Grande will be filing a technical report. This transaction is subject to TSX Venture Exchange approval.
Regarding the acquisition, Adrian Lamoureux, President commented: “With the recent landmark uranium discoveries in the Athabasca Basin and positive outlook on the commodity, Rio Grande has taken this initial step in gaining a foothold in the basin, where quality projects are very rare. It is our belief that this additional focus will bring attention to Rio Grande and increase shareholder value in the short and long term.”
The Mitchell Lake area has seen significant exploration since the mid 1970’s. In 1977, Noranda Exploration intersected down-hole uranium mineralization to the south; drill hole ML5-77 encountered uranium mineralization from 186.3 to 189.3 ft (56.8 to 57.7 m) depth. U3O8 content varied in grade from 0.12% to 0.04%. The intersection also contained minor Ni, Cu, and As values. This zone, which is currently controlled by Cameco Corporation, appears to be fault controlled, with notable magnetic and EM features located to the north, on the Earn-in ground.
The West Bear Deposit, located in the southernmost part of the Hidden Bay property, is a classic unconformity-hosted uranium deposit, which is developed under shallow Athabasca sandstone cover above a conductive graphitic gneiss unit. The deposit occurs along a conductive, graphite-bearing gneiss unit where it intersects the overlying Athabasca sandstone along the southern margins of the Dwyer Dome. A NI43-101 compliant Preliminary Feasibility Study (Golder Associates Ltd. 2010) of the West Bear Deposit gives a resource estimate to a Probable Mineral Reserve estimate of 1,492,261 pounds of U3O8 grading 0.94% U3O8 at a cut-off of 0.18% U3O8 which represents 96% of the mineral resource. The high conversion rate reflects the near-surface nature of the West Bear mineralization, which is amenable to shallow, open-pit mining. The study also reports metallurgical testing resulting in an estimated overall uranium recovery of 95%.
Dr. Peter Born P. Geo, who is responsible for the geological content in this release, has not reviewed the original drill logs, assays or core of historic drilling of the Mitchell Lake Zone or the West Bear Deposit. Geological and exploration information contained in this release is derived from sources believed to be credible.
On behalf of the Board of Directors,
President & CEO
For more information please contact Mr. Lamoureux at 1 604 676 9650, TF: 1 888 486 5613. For further information, investors and shareholders are invited to visit the Company’s website www.riograndemining.com or call the office at 1 604 669 9330.